MBA 611 TEST 1 STUDY
GUIDE QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
lump sum - ANS-single payments
compounding - ANS-finding the future value is the process of going from today's
values to future amounts
faster - ANS-the greater the interest rate, the _________ the growth rate
higher - ANS-the present value declines faster at __________ interest rates
present - ANS-the value of any asset is the ___________ value of its expected future cash
flow
ordinary annuity, annuity due, and growing annuity - ANS-three types of annuities
a) largest
b) declines
c) smallest
d) increases - ANS-In an amortization schedule, interest is _____a_____ in the first
period and _____b______ of the life of the loan, while the principal part repayment is
______c_____ in the first period and it ______d______ thereafter.
GUIDE QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
lump sum - ANS-single payments
compounding - ANS-finding the future value is the process of going from today's
values to future amounts
faster - ANS-the greater the interest rate, the _________ the growth rate
higher - ANS-the present value declines faster at __________ interest rates
present - ANS-the value of any asset is the ___________ value of its expected future cash
flow
ordinary annuity, annuity due, and growing annuity - ANS-three types of annuities
a) largest
b) declines
c) smallest
d) increases - ANS-In an amortization schedule, interest is _____a_____ in the first
period and _____b______ of the life of the loan, while the principal part repayment is
______c_____ in the first period and it ______d______ thereafter.
